The price of Cardano kept decreasing since the beginning of June without any considerable highs, showing that we are going through a bear market period.
However, ADA trades within a narrow window and estimates suggest that a colossal breakout is around the corner.
ADA used to be trading over the 50% Fibonacci retracement level. It cost $1.47 until the middle of the month.
ADA had a sudden slide below it on June 18.
From that point, Cardano price action registered lower highs and lower lows, which is definitive proof that the range is tightening.
Usually, such developments provoke massive moves.
Considering that Cardano prices are decreasing, estimates suggest that it will reach the $1.24 support level.
If the selling pressure keeps rising, ADA may even reach lows of $1.20.
This decrease leads to liquidity.
On the plus side, liquidity can often mean that an upswing will happen soon.
If you invested in Cardano, you could expect a 10% correction and a $1.20 sweep.
A 16% uptrend could come as a follow-up, which would set a new level of $1.40.
However, going past that level can lead to a possibility of reaching the $1.47 point.
However, if the bullish hypothesis doesn’t turn out true, meaning that Cardano price won’t reach a level above $1.20.
If that happens, it will be obvious that the sellers are in the majority and are absorbing the buying pressure.
If that is the case, ADA will most likely reach the subsequent low of $1.11 from June 23.
There are some less favourable hypotheses, but we hope that it isn’t the case.
You should certainly consider investing in ADA, as it may be an excellent opportunity to make a quick profit.
However, nothing is certain, so you should take caution, as it is always the case with crypto.
